Auditing & Assurance Services (Auditing and Assurance Services)
7th Edition
ISBN: 9781259573286
Author: Timothy J Louwers, Allen Blay, David Sinason Associate Professor, Jerry R Strawser, Jay C. Thibodeau Associate Professor
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 1, Problem 54MCQ
To determine
Auditor performed test count on selected items from client’s warehouse to carry out physical verification of inventory. Test counts were then traced to the detailed inventory records in the financial statements which were found in agreement to each other. Identify which management assertion is evidenced using the above mentioned procedure.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What is the earnings per share ?
Accounting
Express Delivery Company (EDC) is considering outsourcing its Payroll Department to a payroll processing company for an annual fee of $220,800. An internally prepared report summarizes the Payroll Department’s annual operating costs as follows:
Supplies
$ 30,800
Payroll clerks’ salaries
120,800
Payroll supervisor’s salary
58,800
Payroll employee training expenses
10,800
Depreciation of equipment
20,800
Allocated share of common building operating costs
15,800
Allocated share of common administrative overhead
28,800
Total annual operating cost
$ 286,600
EDC currently rents overflow office space for $36,800 per year. If the company closes its Payroll Department, the employees occupying the rented office space could be brought in-house and the lease agreement on the rented space could be terminated with no penalty.
If the Payroll Department is outsourced the payroll clerks will not be retained; however, the supervisor would be transferred to the company’s Human…
Chapter 1 Solutions
Auditing & Assurance Services (Auditing and Assurance Services)
Ch. 1 - Prob. 1RCCh. 1 - What conditions increase the demand for reliable...Ch. 1 - Prob. 3RCCh. 1 - Prob. 4RCCh. 1 - Prob. 5RCCh. 1 - Prob. 6RCCh. 1 - Prob. 7RCCh. 1 - Prob. 8RCCh. 1 - Prob. 9RCCh. 1 - Prob. 10RC
Ch. 1 - Prob. 11RCCh. 1 - Prob. 12RCCh. 1 - Prob. 13RCCh. 1 - Prob. 14RCCh. 1 - Prob. 15RCCh. 1 - Prob. 16RCCh. 1 - Prob. 17RCCh. 1 - Prob. 18RCCh. 1 - Prob. 19RCCh. 1 - Prob. 20RCCh. 1 - Prob. 21RCCh. 1 - Prob. 22RCCh. 1 - Prob. 23MCQCh. 1 - Prob. 24MCQCh. 1 - Prob. 25MCQCh. 1 - A determination of cost savings obtained by...Ch. 1 - Prob. 27MCQCh. 1 - Prob. 28MCQCh. 1 - Prob. 29MCQCh. 1 - Prob. 30MCQCh. 1 - Prob. 31MCQCh. 1 - Prob. 32MCQCh. 1 - Prob. 33MCQCh. 1 - Prob. 34MCQCh. 1 - Prob. 35MCQCh. 1 - Prob. 36MCQCh. 1 - Prob. 37MCQCh. 1 - Prob. 38MCQCh. 1 - Prob. 39MCQCh. 1 - Prob. 40MCQCh. 1 - When an auditor reviews additions to the equipment...Ch. 1 - Prob. 42MCQCh. 1 - Prob. 43MCQCh. 1 - Prob. 44MCQCh. 1 - Prob. 45MCQCh. 1 - Prob. 46MCQCh. 1 - Prob. 47MCQCh. 1 - Prob. 48MCQCh. 1 - Prob. 49MCQCh. 1 - Prob. 50MCQCh. 1 - Prob. 51MCQCh. 1 - Prob. 52MCQCh. 1 - Prob. 53MCQCh. 1 - Prob. 54MCQCh. 1 - Prob. 55MCQCh. 1 - Prob. 56EPCh. 1 - Prob. 57EPCh. 1 - Prob. 58EPCh. 1 - Prob. 59EPCh. 1 - Operational Auditing. Bigdeal Corporation...Ch. 1 - Prob. 61EPCh. 1 - Prob. 62EPCh. 1 - Prob. 63EPCh. 1 - Prob. 65EP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump follows: Thalassines Kataskeves, S.A. Income Statement—Bilge Pump For the Quarter Ended March 31 Sales $ 410,000 Variable expenses: Variable manufacturing expenses $ 123,000 Sales commissions 50,000 Shipping 21,000 Total variable expenses 194,000 Contribution margin 216,000 Fixed expenses: Advertising (for the bilge pump product line) 27,000 Depreciation of equipment (no resale value) 120,000 General factory overhead 38,000* Salary of product-line manager 113,000 Insurance on inventories 5,000 Purchasing department 49,000† Total fixed expenses 352,000 Net operating loss $ (136,000) *Common costs allocated on the basis of machine-hours. †Common costs allocated on the basis of…arrow_forwardDo companies maintain two sets of depreciation schedules, one for financial reporting and the other one for tax purposes?arrow_forwardnone ??arrow_forward
- Need help with this accounting questionsarrow_forwardCarichem Company produces sanitation products after processing specialized chemicals. The following relates to its activities: 1 Kilogram of chemicals purchased for $4000 and with an additional $2000 is processed into 400 grams of Crystals and 80 litres of a Cleaning agent. At split-off, a gram of Crystal can be sold for $2 and the Cleaning agent can be sold for $8 per litre. At an additional cost of $800, Carichem can process the 400 grams of Crystal into 500 grams of Detergent that can be sold for $4 per gram. The 80 litres of Cleaning agent is packaged at an additional cost of $600 and made into 200 packs of Softener that can be sold for $4 per pack. Required: 1. Allocate the joint cost to the Detergent and the Softener using the following: a. Sales value at split-off method b. NRV method 2. Should Carichem have processed each of the products further? What effect does the allocation method have on this decision?arrow_forwardGeneral accountingarrow_forward
- Allocate the two support departments’ costs to the two operating departments using the following methods: a. Direct method b. Step-down method (allocate HR first) c. Step-down method (allocate IS first) d. The Algebraic method.arrow_forwardCan you help me with accounting questionsarrow_forwardFinancial accounting question not use ai please don'tarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education